HC Deb 11 March 1958 vol 584 cc224-6
42. Mr. Jay

asked the President of the Board of Trade if he will give an assurance that he does not intend to de-schedule the North-East Coast Development Area under the Distribution of Industry Acts.

Mr. Erroll

No, Sir. The Distribution of Industry Act, 1945, made specific provision for de-scheduling and I cannot give an assurance, whether in regard to this Area or any other, that my right hon. Friend will not make any proposals to Parliament for such action.

Mr. Jay

Will not that Answer cause a lot of anxiety in these cases? Would not the present moment, when the shipbuilding outlook is more uncertain than at any time since the war, be an unwise time for any action?

Mr. Erroll

My Answer should not give apprehension to those Development Areas which are now enjoying unprecedented popularity.

Mr. Shinwell

Is the Minister aware that unemployment is increasing through, out the whole of the North-East and that there is great apprehension at present about possible unemployment even in the mining industry, apart from shipbuilding and other industries? Further, is he aware that there is a Motion on the Order Paper, subscribed to by nearly all the hon. Members for North-Eastern constituencies, asking the Government to give urgent attention to this matter?

[That, in the opinion of this House, to de-schedule the whole or part of the North East Development Area would he prejudicial to the continuing diversification of industry in that area; and that so long as a large proportion of the working population are employed in a small number of basic industries, employment in the area will remain dangerously vulnerable.]

Mr. Erroll

My right hon. Friend was putting forward the suggestion, which he said needed careful consideration. In that consideration he intends to be guided by the terms of the Motion tabled by hon. Members.

Mr. Popplewell

Does not the Minister realise that the statement made the other week by the Minister has created grave apprehension and that the statement now made by the Parliamentary Secretary will accentuate that apprehension in the North-East? Does he realise that several ships are now laid up on the Tyne, that many of the light industries that have gone to the Tyneside are now working short time and that in the engineering industry in particular several people have been paid off because there is no available work in their industry on the Tyneside? Cannot the Minister again give the assurance for which we are asking?

Mr. Erroll

This statement, or suggestion as it was, has undoubtedly given hope to those unfortunates who are unemployed outside Development Areas.

Mr. Jay

If the Minister really doubts that there is anxiety in the area, will he go there and see the people for himself'?

Mr. Erroll

Yes. I shall be very glad to do so when I get a suitable opportunity.